UK booze retailer Naked Wines Plc’s shares tumbled on Wednesday following a non-executive director’s abrupt departure as the company reviews its finances.
(Bloomberg) — UK booze retailer Naked Wines Plc’s shares tumbled on Wednesday following a non-executive director’s abrupt departure as the company reviews its finances.
The shares slid as much as 34%. Naked said in a surprise statement Tuesday night that Pratham Ravi, an analyst with largest shareholder Punch Card Management LP, has resigned from the board. The news came just three weeks after he was appointed, something the company said at the time it was “delighted” about.
The swift exit suggests “something has gone somewhat awry,” Liberum analyst Wayne Brown said in a note to clients, slashing his target price on the company by a third. A spokeswoman for Naked said she couldn’t comment on specific reasons for Ravi’s departure, while Punch and Ravi didn’t immediately respond to requests for comment.
Naked said in a separate statement that it’s reviewing its operational and financial plans for the next 18 months, and added that it’s in discussions about its credit facility. The firm, which has a market capitalization of £74 million ($85 million), will provide a trading update on Oct. 17.
That update could be “rather negative,” Liberum’s Brown said, pointing to a weak balance sheet and question marks around covenants, liquidity and going concern issues.
The stock is now down 85% this year, making it the worst performer on the FTSE AIM 100 Index. The shares soared during the pandemic, but have given up the gains as drinkers were allowed to return to bars and restaurants, fueling worries about retail remand.
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